Georgia CommonsHouse · Engrossed · 2025-2026 Regular Session
HB 1063: Electric utilities; protect residential and retail electricity customers from costs associated with data center construction and operation; require
Last action February 18, 2026 · Senate Read and Referred
House Bill 1063 would require Georgia electric utilities to include customer-protection terms in contracts with large data centers, so residential and small business ratepayers do not absorb the costs of building power infrastructure for those facilities.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
Large data centers use huge amounts of electricity, and building the power plants, lines, and infrastructure to serve them can be expensive. This bill addresses who pays for that: it adds a new part to Georgia's electric utility law requiring that any contract between an electric utility and a qualifying data center include specific protections for residential and retail customers. A 'data center' is defined as a facility or connected group of facilities used mainly to process, store, or transmit data with peak electricity demand of 100 megawatts or more. Contracts with these data centers must include minimum billing requirements, contract terms that can run longer than standard tariffs, credit and performance safeguards in case of default, and protections if the contract ends early. These rules apply only to contracts signed after the bill becomes law, and the Georgia Public Service Commission would enforce compliance under its existing authority.
What the bill does
- Creates a new legal definition of 'data center' in Georgia utility law: a facility or connected group of facilities with peak electricity demand of 100 megawatts or more.
- Requires electric utility contracts with qualifying data centers to include minimum billing terms meant to recover costs tied to serving or preparing to serve the data center.
- Allows those contracts to run longer than the utility's standard service tariff term.
- Requires contracts to include credit and performance provisions protecting retail customers if the data center defaults.
- Requires termination provisions that protect retail customers if the data center's electric service contract ends early.
- Limits the new rules to contracts signed on or after the bill's effective date and gives the Georgia Public Service Commission enforcement authority.
Who it affects
Electric utilities operating in Georgia, large data center operators with electricity demand of 100 megawatts or more, and residential and small business electricity customers who could otherwise bear costs from data center infrastructure. The Georgia Public Service Commission would gain a new enforcement role.
Why it matters
As data centers expand across Georgia, building new power capacity for them can be costly. This bill aims to keep those costs tied to the data centers themselves rather than spreading them to household and small business electric bills, through required contract safeguards.
Key provisions
- Section 1 adds Part 6 to Article 1 of Chapter 3 of Title 46, defining 'data center' as a facility or connected facilities with peak annual electricity demand of 100 megawatts or greater (O.C.G.A. § 46-3-80).
- O.C.G.A. § 46-3-81 requires utility contracts with data centers to include minimum billing requirements, extended contract terms, default protections, and termination protections for retail customers.
- O.C.G.A. § 46-3-82 limits these requirements to contracts entered into on or after the bill's effective date.
- O.C.G.A. § 46-3-83 gives the Georgia Public Service Commission authority to determine compliance with these requirements.
- Section 2 repeals any conflicting state laws.
From the bill
“Each contract between an electric utility and a data center for the provision of electric service shall include terms and conditions designed to protect residential and retail electricity customers from costs associated with data center construction and operation”
“the term 'data center' means a facility, campus of facilities, or array of interconnected facilities used by an entity or other business enterprise to operate, manage, or maintain a computer, group of computers, or other organized assembly of hardware and software for the primary purpose of processing, storing, retrieving, or transmitting data and that have a peak annual electricity demand of 100 megawatts or greater”
Discussed in meetings (6)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House floor session, February 2, 2026 (legislative day 10)
From 0:53:12 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Second Readers)
Summary by Georgia Commons: The clerk read HB 1063 a second time as a bill concerning electricity generation and distribution. Later, a committee member moved to transfer it from the committee handling energy and utilities to the Special Committee on Resource Management, saying both committee chairs agreed. An objection prompted a recorded vote. The House approved the transfer 123 to 10. No discussion of the bill's substantive provisions was recorded.
House Rules Committee, February 10, 2026
From 0:28:40 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1063 would protect residential and retail electricity customers from costs associated with building and operating data centers. The sponsor described required utility contract terms covering minimum billing, recovery of added service costs, credit protections if a data center defaults, and protections when contracts end. The sponsor said contracts could exceed standard utility service terms, the requirements would apply only to contracts entered into on or after the act's effective date, and the Georgia Public Service Commission would determine compliance. No members asked questions, and no vote was shown.
House Rules Committee, February 17, 2026
From 1:01:36 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The committee placed the bill on the day's calendar after a motion and second, with no stated opposition. The bill's substance was not discussed.
House floor session, February 17, 2026 (legislative day 19)
From 1:58:15 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 636
Summary by Georgia Commons: The sponsor said HB 1063 would put Public Service Commission protections into law so residential customers and small businesses would not pay data center construction and operating costs. The sponsor described coverage for facilities demanding at least 100 megawatts, with new contracts requiring minimum billing, suitable contract lengths, credit protections and early-termination protections. Existing agreements would remain unchanged, and the commission would retain flexibility to define added costs. One member repeatedly questioned whether the bill actually prohibited rate increases to cover data center costs. The sponsor said it addressed capital costs through contracts, not the commission's broader rate-setting process. Another member asked about advance notice to communities. The sponsor said planning was outside this bill. A floor speaker said it merely preserved existing rules and did not address water use, nearby homes or excessive power construction, but said they would vote yes. A second floor speaker supported the approach, citing property taxes, construction work and continuing technical jobs. Other members supported consumer protections alongside development and urged further work. The House adopted the committee substitute and passed the bill, 159 to 5.
Status timeline
- Senate Read and Referred (Senate)
- House Passed/Adopted By Substitute (House)
- House Third Readers (House)
- House Committee Favorably Reported By Substitute (House)
- House Withdrawn, Recommitted (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Brad Thomas (R, HD-21)
- Jon Burns (R, HD-159)
- Chas Cannon (R, HD-172)
- Sandy Donatucci (R, HD-105)
- Scott Hilton (R, HD-48)
- Victor Anderson (R, HD-10)
Votes
- House voteFebruary 2, 2026
123 yea, 10 nay (38 not voting, 6 excused)
- House voteFebruary 17, 2026
159 yea, 5 nay (4 not voting, 9 excused)
Topics
- electric utilities
- data centers
- electricity rates
- Georgia Public Service Commission
- utility contracts